Three Ways to Protect Your Business from the Threat of a Lawsuit

When you own a business, you obviously want to do whatever it takes to keep operations running smoothly and avoid expensive lawsuits that drain both money and time.

This article examines three ways that you can protect your business from litigation.

  1. Be Honest and Professional at All Times

Owners and employees alike should refrain from saying or doing anything that could be considered unethical. This includes making slanderous or libelous statements or doing business with anyone known to be unscrupulous. Even if your business is above reproach ethics-wise, associating with companies and individuals who are not can tarnish your reputation. If they end up in court for shady business dealings, there’s a real possibility that you could too.

  1. Hire an Experienced Business Attorney… Before You Get Sued!

When you launch your business, you should hire an attorney who will draw up legal contracts, review company documents, and advise you when you run into potentially litigious situations, such as an employee who believes that they have been discriminated against. By engaging an attorney proactively, you can often prevent legal disputes from arising in the first place.

  1. Purchase Employment Practices Liability Insurance

Although Employment Practices Liability Insurance (EPLI) is available through many insurance agents, not a lot of employers know about it. And if they have employees, it’s something they should definitely evaluate obtaining.

EPLI insures you, the employer, against claims of discrimination, sexual harassment, and several other employment issues. For a premium cost of typically a few thousand dollars annually, your legal fees will be covered, which is a big relief when you consider that some workplace-related litigations can go on for years.

For better or worse, we live in a litigious society, and business lawsuits aren’t confined to Fortune 500 companies. Acknowledge that it could happen to you and work to prevent it by identifying areas of your business that are the most vulnerable to legal action and strengthening them. Above all, understand that proactive legal work can save you a tremendous amount of time and money down the road. Please contact us today to learn more!

Integrated General Counsel